Swap Market Participation’s
Since swaps are privately negotiated products, there is no restriction on who can use the market.
However, parties with low credit quality have difficulty entering the market.
This is due to fact that they cannot be matched with counter parties who are willing to take on their risks.
In the U.S. many parties require their counter parties to have minimum assets of $10 million.
This requirement has become a standardized representation of "eligible swap participants".
Since swaps are privately negotiated products, there is no restriction on who can use the market.
However, parties with low credit quality have difficulty entering the market.
This is due to fact that they cannot be matched with counter parties who are willing to take on their risks.
In the U.S. many parties require their counter parties to have minimum assets of $10 million.
This requirement has become a standardized representation of "eligible swap participants".